Taking corrective actions does not necessarily mean that existing strategies will be
abandoned, or even that new strategies must be formulated.
Product development is an appropriate strategy when an organization has successful
products that are in the maturity stage of the product life cycle.
Allocating resources is one of the five basic activities (functions) performed by
managers.
Before entering international markets, firms should do research to try and diminish the
risk of doing business in new markets.
In order for a firm to achieve sustained competitive advantage, a firm must continually
adapt to changes in external trends and events and effectively formulate, implement,
and evaluate strategies that capitalize upon those factors.
The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and
Germany.
Restructuring is also called rightsizing.
A low-cost focus strategy can be especially attractive when the target market niche is
small.
What is a central strategy-implementation technique that allows an organization to
examine the expected results of various actions and approaches?
A) EPS/EBIT
B) Financial budgeting
C) TOWS analysis
D) Projected financial statement analysis
E) External analysis
Foreign revenue as a percentage of total company revenues ________ in hundreds of
U.S. firms, including ExxonMobil, Gillette, and Citicorp.
A) is almost 10 percent
B) approaches 20 percent
C) is 25 percent
D) exceeds 50 percent
E) is at least 70 percent
Freund emphasizes that key external factors should be all of these EXCEPT
A) important to achieving long-term and annual objectives.
B) measurable.
C) relatively few in number.
D) applicable to all competing firms.
E) hierarchical in the sense that some will pertain to the overall company while others
will be more narrowly focused.
How does life in Mexico compare to life in the United States?
A) It is faster.
B) It is more hectic.
C) It is more punctuality-driven.
D) It is slower.
E) It is more competitive.
What term refers to the need for strategists to examine sets of trends, as well as
individual trends, in evaluating strategies?
A) Consistency
B) Consonance
C) Synergy
D) Feasibility
E) Advantage
A firm’s strengths that cannot be easily matched or imitated by competitors are called
A) internal audits.
B) distinctive competencies.
C) external audits.
D) interrelated properties.
E) internal properties.
A concern in matching managers with strategy is that jobs have relatively ________
responsibilities, while people are ________ in their personal development.
A) static; dynamic
B) dynamic; static
C) quick; slow
D) exciting; dull
E) dull; exciting
Success today
A) guarantees success tomorrow.
B) is no guarantee of success tomorrow.
C) should lull a firm into complacency.
D) is all that really matters.
E) none of the above.
________ perhaps has instituted the most protectionist measures in recent months by
raising tariffs on most imports and subsidizing its own exports.
A) Russia
B) The United States
C) The EU
D) India
E) Switzerland
In Europe it is generally true that the farther ________ on the continent, the more
participatory the management style.
A) south
B) east
C) west
D) north
E) southeast
Although Quadrant ________ companies are growing, according to the Grand Strategy
Matrix they are unable to compete effectively, and they need to determine why the
firm’s current approach is ineffective and how the company can best change to improve
its competitiveness.
A) I
B) II
C) III
D) IV
E) V